November Capital Good Shipments

December 23, 2005 – Real non-defense capital good shipments excluding aircraft were unchanged in November following a strong 1.8% October increase (Chart 1).

Growth in these shipments averaged 0.3% per month for the three months through November, compared to a 1.1% average monthly gain for the three months through October.

Despite this recent slowing, the broader trend remained robust. Compared to the same month last year, real non-defense capital good shipments excluding aircraft rose by 7.8% in November, accelerating from a 5.6% year-ago gain in October (Chart 2).

As of November, Q4 real non-defense capital good shipments excluding aircraft were rising at a 9.5% annual rate, compared to their Q3 average (Chart 3). For Q3 as a whole, these shipments rose at a 1.8% annual rate.

Bottom line: Even with November’s slowing, these data
continue to suggest sturdy growth in real business fixed investment in
equipment & software in Q4.